See these Intel stock price levels after the chipmaker’s earnings beat expectations

Shares of Intel ( INTC ) rose on Friday morning after the chipmaker turned profitable that beat Wall Street expectations, suggesting its closely watched turnaround plan is gaining momentum.

CEO Lip Bo Tan, who took over in March and has refocused the company’s strategic direction, said the third-quarter results show Intel’s “steady progress” in its transformation, adding that demand for artificial intelligence has created “attractive opportunities” across its portfolio.

The stock was up 1.2% at $38.60 in recent trading, after rising above $41 early in the session to its highest level since April 2024. As of today’s session, the stock was up 90% so far this year, with the lion’s share of those gains coming in recent months as investors cheered on multibillion-dollar investments from Nvidia (NVDA) and SoftBank. (SFTBY), in addition to US government investments. 10% stake in the chip maker.

Below we analyze the technical aspects on Intel’s chart and identify important post-earnings price levels that are worth paying attention to after the quarterly report.

Breakout rectangle formation

Intel shares consolidated into a rectangle shape through most of October, setting the stage for a continuation of the stock’s recent uptrend.

The stock’s trend has remained bullish since it broke out of a multi-month trading range in September, shortly after the 50-day moving average crossed above the 200-day moving average to form a golden cross, a chart pattern that indicates a sustained uptrend.

Let’s apply technical analysis to forecast a potential near-term upside target on the Intel chart as well as identify important support levels worth watching during future corrections.

Measured movement of the target upward

Investors can anticipate an upside target on Intel’s chart using the measured movement technique, also known by chart watchers as the scaling principle.

When applying the analysis, we calculate the distance of the strong upward movement that preceded the rectangle in points and add this amount to the upper trend line of the formation. For example, we add $10 to $39, which means the target is $49.

Important support levels worth watching

During pullbacks in the stock, investors should keep an eye on the $36 level initially. This area on the chart could provide support near the base of the rectangle pattern and the price group just below the July 2024 swing high.

A close below that level could send shares falling to around $32. Investors may be looking for buying opportunities in this area near the top of the breakaway gap that occurred last month and the sideways trend that formed on the chart between April and July of last year.

Finally, selling below this level opens the door to a retest of a lower trading floor near $29. Intel shares may find support in this position near the late September low, which also corresponds closely with the closing price on August 1, 2024 that preceded the stock’s big gap the next day.

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As of the date of writing this article, the author does not own any of the securities mentioned above.